When to report big-ticket purchases to your insurance company
This advice from the Zebra offers direction on which purchases are already covered under your home policy, and which may need extra protection.
Over the course of the COVID-19 pandemic and corresponding lockdowns, many folks invested in big-ticket items in order to enhance their stay-at-home experience. Whether you purchased new electronics, outdoor recreation equipment or work-from-home gear, these things can rack up a pretty high tab and it’s important to understand the best way to protect these purchases.
Homeowners and renters policies include coverage for personal property, but not every new item you purchase for your home will be adequately protected by that.
Recently, the Zebra released the results of a survey that broke down the most common large purchases insureds have made in the last three years. They also offered the following tips on whether you should inform your insurer of each of their survey respondents’ most common purchases.
Televisions
Televisions will almost certainly be protected by the personal property coverage in your homeowners or renters policy, as long as it is damaged by a covered event.
Solar panels
Solar panels are permanent additions to your home, so they most likely won’t require their own policy, but can affect the value of the house. If you purchase solar panels, you should inform your insurance company to ensure your coverage limits don’t need to be extended to include the added value.
Swimming pools
Pools are considered “attractive nuisances” by insurance companies, and create more risk on a property, which leads to increased premiums. If you install a new pool, it is important to alert your insurer as you’ll need both liability and other structure coverage.
Gym equipment
While most athletic equipment will fall under the personal property coverage in your home or renters insurance, this equipment can be dangerous. It may be worth reaching out to your insurance company to add personal injury coverage in case a guest is injured by the equipment.
Kitchen appliances and furniture
Unless you purchased something exceptional or valuable, chances are your homeowner or renters policy will cover any new kitchen appliances or furniture. Covered perils can vary policy-to-policy, so it’s important to familiarize yourself with yours, and to take advantage of any available warranties on your new purchases.
Computers
Unless you have a particularly expensive computer – which could warrant its own policy – you shouldn’t need extra coverage beyond your home or renters policy when you purchase a new laptop or desktop. Just like with appliances or furniture, you should explore the warranty options available for your computer, as warranties will typically cover damage from accidents – like drops or water damage – that your insurance policy may not.
Boats, campers, RVs and ATVs
As a general rule, if you purchase a vehicle that is separate from your home, it will need its own insurance policy. Insurance may not be legally required for some vehicles in your state, but it’s always a smart idea to protect these large investments.
Regardless of whether you decide to tell your insurance company about your latest big buy, you should still document any major purchases in your home inventory to aid in the claims process if you experience a loss.